Don’t Dock Unauthorized Overtime Worked in Business and at Work

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Categorized under Illegal Deductions on the NYS Department of Labor website:

The Division of Labor Standards ensures employers in New York State do not make illegal deductions from workers’ wages.

This includes deductions for:

  • breakages
  • cash shortages
  • fines
  • losses to the business
  • deductions not listed in Section 193 of the Labor Law
  • charges for check replacement
  • overcharges for paid family leave premiums.

In my HR travels, I’ve periodically encountered employers who want to deduct unauthorized overtime worked as both a disciplinary and a cost-savings measure.

Simply put: employers can’t dock unauthorized overtime worked for any reason. Overtime worked – whether authorized or unauthorized – must be paid in order to comply with state and Federal Wage and Hour requirements.

Moreover – the correct way to handle unauthorized time worked is through disciplinary corrective action (e.g., a progressive discipline process) – not by reducing an employee’s compensation in a non-compliant manner.

How do you ensure compliance with Wage and Hour regulations by not docking employees for unauthorized overtime in business and at work?